Applicability of s. tax on on these online services
C..a......STUDENT
(Querist) 16 November 2013
This query is : Resolved
Will service tax provisions be applicable on the following online services:
1) To Acquire, Assign, Buy, Carry on, Deal in, Dispose off, Market, Procure, Protect, Purchase,Register, Sell, Trade for, Transfer, Use, Vend and Work for Domains Names; Service Marks & Names; Web Designing; Web Hosting; Web Intelligence; Web Management; Web Page Hosting; Web Server, Web Services and all other branches of Domains Registration and
Registry and to render IT Enabled Services.
2) To do business of Development and sale of Internet sites, Development of Computer Software, Portal Development, SSL certificates and Search engine optimization.
3) To provide services of online business promotion and commerce development.
Please reply.
prabhakar singh
(Expert) 16 November 2013
Well the query is for gainful business activity which I would not answer.This does not fit into ambit of a free advice.
prabhakar singh
(Expert) 16 November 2013
Otherwise also i am not a man of tax laws.
malipeddi jaggarao
(Expert) 17 November 2013
As per Finance Act, 1994 (Extracts)
(As effective from 1-7-2012, except sections 67A, 72A and 73)Section 66D contains Negative list of services. - The negative list shall comprise of the following services, namely:-
(a) services by Government or a local authority excluding the following services to the extent they are not covered elsewhere-
(i) services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than Government;
(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
(iii) transport of goods or passengers; or
(iv) support services, other than services covered under clauses (i) to (iii) above, provided to business entities;
(b) services by the Reserve Bank of India;
(c) services by a foreign diplomatic mission located in India;
(d) services relating to agriculture or agricultural produce by way of-
(i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or seed testing;
(ii) supply of farm labour;
(iii) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
(iv) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;
(v) loading, unloading, packing, storage or warehousing of agricultural produce;
(vi) agricultural extension services;
(vii) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce;
(e) trading of goods;
(f) any process amounting to manufacture or production of goods;
(g) selling of space or time slots for advertisements other than advertisements broadcast by radio or television;
(h) service by way of access to a road or a bridge on payment of toll charges;
(i) betting, gambling or lottery;
(j) admission to entertainment events or access to amusement facilities;
(k) transmission or distribution of electricity by an electricity transmission or distribution utility;
(l) services by way of-
(i) pre-school education and education up to higher secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
(iii) education as a part of an approved vocational education course;
(m) services by way of renting of residential dwelling for use as residence;
(n) services by way of-
(i) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;
(ii) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers;
(o) service of transportation of passengers, with or without accompanied belongings, by-
(i) a stage carriage;
(ii) railways in a class other than-
(A) first class; or
(B) an air-conditioned coach;
(iii) metro, monorail or tramway;
(iv) inland waterways;
(v) public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and
(vi) metered cabs, radio taxis or auto rickshaws;
(p) services by way of transportation of goods-
(i) by road except the services of-
(A) a goods transportation agency; or
(B) a courier agency;
(ii) by an aircraft or a vessel from a place outside India to the customs station of clearance in India; or
(iii) by inland waterways;
(q) funeral, burial, crematorium or mortuary services including transportation of the deceased.
All other services attract Service Tax.
ajay sethi
(Expert) 17 November 2013
consult service tax consultant
V R SHROFF
(Expert) 17 November 2013
nothing more to add
C. SANJEEVA RAO
(Expert) 18 November 2013
U r liable to obtain registration if ur turnover from services is exceeding Rs.10lakhs and also ur service is liable to service tax as per section 65 of the Finance Act,1994
